Spurred on by low mortgage interest rates, the market continues its upward trend and shows little indication of slowing anytime soon. Since 2012, the annual median sales price for a single-family home has gone from $620,000 in 2012 to $650,000 in 2013 and up to $675,000 in 2014 — surpassing the peak bubble year of 2007 when the median price was $643,000. Condos too are keeping pace with year-over-year single-family stats.

This year’s summer selling season year-to-date prices are heading for another all-time high. Buyers, even first-time homebuyers, are competing for available inventory, evident by the bidding wars we see in many neighborhoods and on well-priced listings.

“I would describe the market as red hot, as the average days on market for homes that sold last month was just 16 days — the lowest in over a decade,” adds Kalama Kim, principal broker at Coldwell Banker Pacific Properties.

In addition to lightning-fast sales, other market stats are sizzling as well. Pending sales, which show homes and condos in escrow but haven’t closed yet, are also on the rise. Single-family pending sales are up 14.4%, from 416 a year ago to 486 last month. Condo pending sales are up 10.2% in July, from 581 in July of 2014, to 640 last month.

“Even though the Federal Reserve has threatened increased mortgage rates later this year, the rates have remained below 4%, allowing buyers to afford the rising home prices,” says Kim.

Inventory was up in both categories — single-family home active listings were up 6.1% to 1,331 listings island-wide, and condo listings were up 12.6% to 2,040 — and are two-year highs. However, the months of inventory remaining of 3.3 months and 3.7 months, respectively, indicates there is little inventory to meet demand and is well short of the 6 to 9 month figure deemed a healthy market for both buyers and sellers.


Sales of Single Family Homes and Condos | July 2015
Source: Honolulu Board of REALTORS®, compiled from MLS data



“The market has continued its strength through the summer. Pending sales in July are up 14.4% for single-family homes,” says Kim. “Closed sales are up, year-to-date through July, by 4.8% for homes. (Year-to-date, 1,925 single-family homes closed, compared to 1,837 through the end of July in 2014.)”

In July, the number of single-family transactions that closed was 337, compared to 300 during the same month a year ago — a 12.3% increase. Condominiums sales volume is also up. Last month, 501 condos closed on the island — a 12.8% increase over last year when 444 units closed.


Median Sales Price of Single Family Homes and Condos | July 2015
Source: Honolulu Board of REALTORS®, compiled from MLS data



The median price of a single-family home on Oahu remains in record-breaking territory in July — at $710,000.

“In addition to the jump in pending sales and closed sales, home prices continue to rise as the median sales price for single-family homes jumped to $710,000 in July, which is the second highest mark for Oahu’s home sale history,” says Kim.

The record, all-time high for one month, was set in November 2014, stands at $719,500.

Year-to-date, the median price of a single-family home is at $690,000, up 2.3% from the median of $674,700 at this point last year.

Condo prices were down slightly this month — from $351,750 a year ago, to $350,000 last month. However, year-to-date condo prices are up to $359,000 — up 2.6% from the MSP last year of $350,000.


With median prices inching closer to the million dollar mark, this month’s hottest markets are those neighborhoods which met or broke the million dollar price tag in the year-to-date 2015 tally.

Single-family homes in:

  • Aina-Haina – Kuliouou: $1,060,000
  • Ala Moana – Kakaako: $1,217,500
  • Hawaii Kai: $1,050,000
  • Kailua – Waimanalo: $1,005,000
  • Makiki – Moiliili: $1,175,000
  • Waialae – Kahala: $1,780,000

Also worth mentioning, Wahiawa was the stand-out neighborhood in June for a couple of reasons. First, the median price of a condo in Wahiawa hit a two-year high — at $195,000. Additionally, sellers in Wahiawa typically received more than their asking price. Single-family sellers in Wahiawa received 106.1% of their asking price, and condo sellers in the neighborhood received 98.2% of their asking price.